Synopsis: Nifty PSU Bank Index drops over 3% amid weak global market sentiment. PNB, BoI, and Union Bank shares dip up to 5%.
Rephrased Article
Amid a second consecutive session of market decline, the Nifty PSU Bank Index plunged over 3% in early trading on Monday. All 12 PSU banks listed on the index experienced selling pressure, with Bank of India (BoI) shares suffering the most significant loss at around 5%. Other major decliners included Punjab & Sind Bank (PSB), Punjab National Bank (PNB), Union Bank of India, Bank of Baroda (BoB), and State Bank of India (SBI), while UCO Bank saw a smaller decline of approximately 1.80%.
Experts attribute the slide in PSU Bank shares to weak global market sentiments, fueled by renewed fears of a US recession following higher jobless claims last Friday, escalating Israel-Hamas tensions, and the ongoing US-China trade war. They recommend a 'buy-on-dips' strategy for quality PSU Bank stocks like SBI, BoB, Canara Bank, and Union Bank of India.
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that the Nifty PSU Bank Index has strong support between 6,400 and 6,500 and faces resistance at 7,100. He advised investors to maintain a 'buy-on-dips' approach until a clear trend emerges.
Avinash Gorakshkar, Head of Research at Profitmart Securities, noted that PSU banks are falling due to global market weakness and profit booking by investors. Despite this, he emphasized that PSU stocks remain quality investments, with SBI, BoB, Union Bank of India, and Canara Bank still trading at attractive PE multiples.
Bagadia recommended buying SBI shares around Rs790 to Rs800 for short-term targets of Rs860 and Rs900, with a strict stop loss at Rs760. He also suggested accumulating BoB shares in the Rs230 to Rs220 range, with a stop loss at Rs210, expecting the stock to reach Rs270 to Rs280 in the short term.
Disclaimer
This article is for informational purposes only. Please conduct your own research or consult a financial advisor before making investment decisions. The author is not responsible for any financial losses.
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